According to MiningWeekly, a report released by Statistics South Africa on November 11 shows that the country's mining production fell by 3.4% year-on-year in September.

The main reasons for the decline are the reduced output of coal, platinum group metals, and gold.

Manganese ore production increased by 14.2%, contributing 1.2 percentage points, making it the main driver of growth.

After seasonal adjustment, South Africa's mining production decreased by 3.7% in September compared to August. In August, it decreased by 2% month-on-month, while July saw an increase of 3.6%.

Compared to the second quarter, seasonally adjusted production in the third quarter decreased by 0.6%.

Meanwhile, the country's mineral product sales in September increased by 1.1% year-on-year in current prices. The largest contributors were coal and platinum group metals, which grew by 25.5% and 6.7%, respectively.

Manganese ore and gold production fell by 28.4% and 18%, contributing -2.1 and -1.8 percentage points, respectively.

Compared to August, seasonally adjusted mineral product sales in September decreased by 24.6%. In August, it increased by 1.2% month-on-month, while July saw a decrease of 1.1%.

Compared to the second quarter, seasonally adjusted mineral product sales in the third quarter decreased by 8.9% in current prices.

Although the Covid-19 pandemic has impacted mineral product production, Riley Bank believes that the industry is performing better than in the same periods of 2017, 2018, and 2019.

Overall,the growth momentum of mining production since March has been slowing down, and the lifting of domestic Covid-19 restrictions will support the industry's recovery.

However, Riley Bank warns thatthe uncertainty brought by the pandemic and electricity restrictions will affect mining development, while rising mineral product prices and global demand growth will drive an increase in mineral product sales.

Source: Global Geological Mineral Information System